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business opportunities in the country.
He also dispelled the misconception that the indigenisation and empowerment process was meant to nationalise companies. It was Government’s broad-based empowerment initiative, designed to include the black majority in the mainstream economy.
The PM was addressing about 900 delegates at the Zimbabwe Investment and Trade Conference in Fourways, Gauteng, under the theme “Invest In Zimbabwe, Invest in a Rich Growing Resource Economy”.
The Prime Minister said the conference was taking place against a background of renewed economic confidence and revival ushered by the formation of the inclusive Government.
“I know some of you are adopting a wait-and-see attitude. There is no need to wait . . . the country is moving forward. We (in the inclusive) Government are anxious that the country catches up with the (rest of the)region and and whole world. As you make your (investment) decisions in your boardrooms, (may you also) consider Zimbabwe.”
He dismissed those describing the empowerment policy as “an expropriation” designed as a ploy to nationalise foreign-owned companies when, in fact, the law did not have such a provision.
“The law does not talk about nationalisation or ‘asset grab’. As investors, make your risk assessment. We are clarifying that at the political level,” he said
Earlier, Minister of Economic Planning and Investment Promotion Mr Tapiwa Mashakada had told the conference that it was not the intention of the Government to nationalise foreign companies.
“We will always address all concerns with regards to indigenisation. We urge you to engage our authorities.”
Under the empowerment laws, foreign-owned companies are required to sell at least 51 percent stake to black indigenous people. Some progress had been made, with some companies having partly complied with the policy.
But PM Tsvangirai noted with concern that the investment environment in the country had been affected by the mixed messages coming from the inclusive Government on indigenisation.
“Some of us in this Government believe in broad-based economic empowerment of the ordinary person, and not the enrichment of the elite,” he said.
“We are not there yet. But the fact that we are here today, talking about investment in Zimbabwe, is evidence that we remain a country of hope; indeed a nation of resilient and hard-working people that wants the best for their country.”
He said Zimbabwe should equally strive to put in place the best international practices, which bode well for attracting foreign direct investment.
It remained important, at a political level, to support business by creating and introducing reforms that are essential for economic growth.
Despite the abundant natural resources with which the country is bestowed, it was yet to achieve the desired levels of economic growth and investment inflows, largely due to policy inconsistencies and policy unpredictability.
South Africa remained the country’s biggest trading partner.
Minister Mashakada urged investors to look for key fundamentals when considering investing in the country.
“Zimbabwe is a diversified economy which offers diversified portfolios. The country is one of the fastest-growing economies with the lowest inflation in the region. A lot of positive things are coming up. We have not chosen South Africa by mistake but a conscious decision was taken,” he said.
The conference, which ends today is being attended by local business groups, captains of industry and senior Government officials from both countries, fund and portfolio managers.
Online Reporter